The latest Commitment of Traders (CoT) report from the ICE platform reveals that, at the end of last week, investment funds expanded their net long positions to a massive 54.2 million allowances, leading to an impressive 70% weekly rise.
The upward momentum from last week, which delivered a 4.2% weekly gain, carried into Monday on the European carbon market. EUAs climbed as high as €77.32 before settling with a 1.49% daily increase.
According to a new report from the environmental think tank Sandbag, supported by the Konrad-Adenauer Foundation, the EU’s Carbon Border Adjustment Mechanism (CBAM) in its current form would remove 246 million free allowances per year compared to 2023.
The European carbon market ended lower on Friday but still posted a weekly gain of 2.6% in what was described by Carbon Pulse as a very calm session, with EUAs trading “in the narrowest daily range in four years.”
On the European carbon market, prices edged higher on Wednesday, supported by stronger gas. The EUA Dec’25 contract touched an intraday high of €71.54 before closing at €71.29, a modest daily gain of €0.13.
The most recent Commitment of Traders (CoT) report, published by ICE this morning, revealed that investment funds cut their net long positions (longs minus shorts) to 20.2 million allowances, down from 28.8 million the week before.
According to a recent Eurostat report, emissions in the European Union rose by 3.4% in the first quarter of this year compared with the same period in 2024. This marks the second consecutive quarter of rising emissions, following a 2.2% increase in the final quarter of 2024.
Ahead of the Trump-Putin summit and following sharp declines in energy-related markets, the European carbon market also moved lower, though at a more moderate pace. On Friday, EUA Dec’25 closed at €70.68, its lowest in three weeks, recording a daily drop of €0.28 and a weekly decline of 3.46%.
According to the International Energy Agency (IEA), gas-fired power generation in the European Union rose by roughly 20% in the first half of this year compared with the same period in 2024. Coal-fired generation also increased, though more modestly, by about 3%.
The latest Commitment of Traders (CoT) report from the ICE platform reveals that, at the end of last week, investment funds expanded their net long positions to 17 million allowances, up from 14.95 million the previous week.